Not to be a downer, but we might be a while before we see a takeover bid. It will very likely be several more years before any mining is done here. Construction of the infrastructure will take at least two years to do environmental and construction of railway.

Even with government support, these steps can not be sped up much more than that. Without support, the environmental issues could take years on their own... (see comments below the stories on http://waterwalker.ca/fireside/index.php?topic=1180.msg13357;topicseen for an indication of the environmentalist's point of view). There is also still a deal to be struck with the First Nations... a lot to accomplish yet.

Until that point, Cliffs holds a majority interest in the deposit, including Big Daddy, through their ownership of FWR and the 20% interest in KWG. There is lots of time yet to decide whether they need to buy Spider and KWG, which won't happen unless they decide that Big Daddy is more tempting than their wholy owned property.

As to what the eventual bid will be, I would expect that we will only see about 10% of the in situ value at most. Voisey's Bay purchase by Inco was about that level. However, Freewest was bought for much less than 10% (actually at about 0.6% of in situ value...)

If we say that the Big Daddy deposit is slightly small than Thor (but easier to mine due to higher grades) and worth about $20 billion (using the WAG method (Wild Ass Guess) of 50 million tonnes at $400/ton), then our 26.5% interest is worth $5 billion. 10% of that is about $500 million. So, we could see $1 per share...

If Cliffs puts us over the barrel like they did with FWR, than we will see an initial offer at about 8 cents a share...

Of course, this is all just mind gaming until the 43-101 comes out. We need that 43-101 to determine whether we are attractive enough. Thor represents enough mining interest for a number of years before it is exhausted, if we aren't able to show them up.

As always, do your own due diligence.